Item 2. Properties
ITEM 2.
PROPERTIES.
The Company leases its 19,576 square foot corporate office facility with average annual lease payments of approximately $18.00 per square foot. This lease began on January 2,
2017 and has a ten-year term. The Company amended its lease agreement in June 2020 and has elected to defer one-half of the monthly base rent for the period from June 2020 through May 2021.
As of June 28, 2020, the Company had contingent and direct lease obligations for 16 additional locations. Two of the lease obligations have been subleased, nine of the lease
obligations have been assigned to franchisees, and five of the lease obligations are direct lease obligations for non-operating locations. These leased properties range in size from 2,021 to 2,850 square feet, have annual rental rates ranging from
approximately $28.00 to $44.00 per square foot and expire between 2022 and 2028. The Company is currently pursuing alternatives for subleasing or terminating the remaining five non-operating unexpired leases.
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